Nvidia has reportedly removed more than half of its previously approved Asian customers from a list of companies authorised to purchase its advanced artificial intelligence chips as the United States intensifies efforts to prevent sensitive technology from reaching China.
The semiconductor giant has introduced a stricter “white list” containing buyers that successfully passed expanded compliance and due-diligence checks, according to a Financial Times report cited by Reuters and The Business Times.
The review has focused heavily on customers operating in Singapore, Malaysia and Japan, where concerns have grown that intermediaries could be used to redirect restricted American chips to Chinese companies.
More than half of Nvidia’s former authorised buyers reportedly failed the initial assessment. Many of the affected businesses are neo-cloud providers—specialised cloud-computing companies that supply infrastructure designed for artificial intelligence workloads.
Companies excluded from the list may be allowed to make changes to their operations and reapply for approval.
Nvidia’s strengthened screening process reportedly goes beyond reviewing paperwork. Company representatives are said to be visiting customer data centres, checking contracts and interviewing end users to confirm that the businesses are genuine and that the chips will remain at their declared destinations.
The US Department of Commerce is also reportedly providing oversight and political support for the expanded compliance programme.
The measures reflect Washington’s broader attempt to close loopholes in export restrictions that have limited China’s access to advanced American processors for several years.
US authorities are particularly concerned that cutting-edge Nvidia Blackwell chips may have reached companies linked to China through subsidiaries or intermediaries based in other Asian countries, including Malaysia.
In May, the US Commerce Department issued guidance aimed at preventing controlled AI chips from being supplied to overseas subsidiaries of Chinese businesses. The guidance increased pressure on chipmakers and distributors to identify the true end users of their products.
The latest crackdown also follows allegations involving the illegal diversion of advanced computing equipment through Southeast Asia.
In March, US prosecutors charged a co-founder of server manufacturer Supermicro and several employees over an alleged scheme involving approximately US$2.5 billion worth of chips and related equipment.
Prosecutors alleged that a Southeast Asian company was used as a pass-through entity to move Nvidia-powered servers from Taiwan to China through third-party brokers. Some equipment was allegedly repackaged in unmarked boxes to conceal its contents and destination.
Supermicro said it was cooperating with authorities in the United States and Taiwan.
Nvidia has maintained that compliance with export controls is one of its highest priorities and that the company follows all applicable legal requirements.
The tighter controls have reportedly contributed to a shortage of advanced AI processors in China, where demand for computing power continues to rise as technology companies expand the use of artificial intelligence systems and autonomous AI agents.
These advanced applications can require considerably more processing capacity than conventional chatbots, placing additional pressure on China’s limited domestic chip supply.
Washington has restricted exports of Nvidia’s most powerful processors to China on national-security grounds. At the same time, Beijing has encouraged local companies to rely more heavily on domestically produced semiconductors.
Some Chinese technology businesses have reportedly urged authorities to permit broader access to Nvidia’s H200 processor. However, large-scale approval is considered unlikely as Beijing seeks to strengthen its own semiconductor industry.
Chinese chipmakers are working to expand production, but their progress remains constrained by limited access to the world’s most advanced manufacturing equipment.
Industry sources have indicated that domestic Chinese suppliers are struggling to meet demand, with even lower-performance processors attracting buyers as companies search for any available computing capacity.
The reduction in Nvidia’s approved Asian customer base highlights the growing compliance burden facing technology companies caught between enormous demand for AI hardware and increasingly strict US export controls.
It also shows how Southeast Asian and regional technology businesses are receiving greater scrutiny as Washington attempts to prevent restricted chips from being diverted to China through third countries.
Reuters said it had not independently verified every detail of the Financial Times report. Nvidia and the US Commerce Department did not immediately respond to Reuters’ requests for comment outside regular business hours.
